There are no called strikes on Wall Street. In other words, we're not penalized for not swinging, like you are in baseball. We have the ability to be patient, to a certain extent at least, depending on your mandate. But most of us don't have mandates! Even one of the best hitters of all time struggled when he swung at bad pitches. In this video we compare Ted Williams' batting average when he swung at good pitches, vs when he swung at bad ones.
This is my favorite reminder that in trading & investing, we want to wait for OUR perfect pitch, and then swing, vs just swinging at anything.
This is a market of stocks, and not just a "stock market".
All of these Indexes, from the Dow Jones Industrial Average to the Russell2000 Small-caps, are made up of components. There are 30 stocks in the Dow and 2000 stocks in the Russell2K, for example.
Are more of them going up? Are more of them making new highs? Are more of them showing bullish momentum characteristics? Are fewer and fewer components doing these things as the indexes make new highs? What about in downtrends? Are more stocks confirming the new lows in the indexes or are fewer and fewer stocks making new lows and showing bearish momentum characteristics as the market makes new lows?
The answers to these types of questions is what we call, "Market Breadth Analysis". There are a lot of ways to do this on all sorts of different time horizons. In this lesson we go over all the methods we use to decipher market breadth, which can be used by both individual traders and the largest financial institutions in the world.
Wow what a weekend! Thank you all so much for your support.
We had 10,000 people register for Chart Summit, our Live Virtual Technical Analysis Conference. There were over 30 presentations and we raised over $50,000, just on the first day, to help fight COVID-19. You can still donate here.
We made it really easy to access the videos and organized them so you can go back and watch whenever you want. Just go to Chartsummit.com and click Watch The Videos and you're on your way!
There has been a lot of risk in the stock market over the past 2 months and that still has not changed. Things are getting worse, not better. I tried to emphasize in this week's Live Call that we have NOT seen any evidence to suggest that the worst of the selling is behind us.
We've been inundated with emails from Financial Advisors and traders all over the world. From New York to London, South Africa, Malaysia, Laguna Beach they keep coming in. We work really hard and it is so nice to see how much we've been able to help people, both pros and every day hard working individuals. Thank you from all of us at Allstarcharts! We don't take these notes for granted even for a second.
We know times are tough for some people right now. I have friends and family that lost their jobs today. I'm seeing it outside of markets.
As you guys know, we've had a much more defensive approach to the stock market over the past few weeks, especially compared to how bullish we had been for so long. There is a time to be big and aggressive and a time to be small and cash heavy. I believe we're currently in the latter of those two categories.
There is a lot going on in the market right now, not just in the U.S. but globally. The intermarket relationships between Bonds, Gold and the US Dollar are having a major impact on equities.
January is a month that gives us a lot more information than most other months throughout the year. We have the data now that we can use to help us identify primary trends.
Volatility is picking up. Daily swings are getting larger. I’ve seen this story before.
We discuss all of this and a lot more.
This is the video recording of the February 2020 Conference Call.
*NOTE: This Post and Video was originally intended for Premium Members of Allstarcharts Only. But due to the circumstances, we have unlocked it for everyone to watch and download the slides. We feel this can be used for educational purposes moving forward. Thank you for understanding.
In this Episode of Allstarcharts Weekly, Steve and I discuss all the reasons why we're buying bonds right now instead of stocks and commodities. The big point here for me is that it's not just one chart. There is no single holy grail suggesting we buy bonds. This is a weight of the evidence conclusion. It's not one chart, it's hundreds of them all pointing to the exact same thing: Sell stocks and Buy bonds!
In this Episode of Allstarcharts Weekly, Steve and I talk about the newest Sector in America: Communications. Back in 2018, the Index makers took out some of our favorite Technology stocks and put them along with some telecom into this new Index called Communications. With Google and Facebook now representing 40% of this $XLC index, the fact that we're just now breaking out to all-time highs says a lot about the space.
I had a great day in New York City Wednesday. Good meetings, good eats and good people.
BNN Bloomberg was nice enough to invite me on their network to talk charts.
Catherine and I discussed some of my favorite sectors and industry groups. We went over the macro picture and beginning of this new bull market for stocks.
Most importantly, in my opinion, we went over what it would take for us to get more defensive, at least in the near term.
